Who Can Apply to the AI‑Powered Supply Chains Cluster (Scale AI)

Canada’s AI-Powered Supply Chains Cluster (Scale AI) funds industry-led projects that adopt or commercialize artificial intelligence to improve value chains. The program operates nationally as part of the Global Innovation Clusters, with continuous intake for industry-led projects and special calls from time to time.

This article explains who can apply to Scale AI funding, what types of organizations qualify, the role of SMEs, geographic and project requirements, and common exclusion cases. Use it to quickly self-assess “Do we qualify?” before investing effort in a submission.

By the end, you will understand Scale AI eligibility, consortium expectations, and the core selection criteria used to assess projects.

Program Overview

Scale AI funding supports collaborative, industry-led projects that either:

• adopt AI to improve a value chain (for example, demand forecasting, inventory optimization, logistics, scheduling, or quality inspection), or

• commercialize AI-based products and services that deliver measurable value chain improvements for customers.

Key context for eligibility:

• Funding model: non-repayable grant, reimbursing a predefined portion of eligible costs, typically up to 40% for industry-led projects.

• Project structure: multi-partner consortium with at least one SME partner (defined as fewer than 500 full-time employees).

• Sectors: broad eligibility, including consumer goods and retail, industrial goods and manufacturing, transport and logistics, healthcare, infrastructure and construction, ICT and software, and more.

• Selection lens: alignment with Scale AI strategy for productivity in value chains, collaboration and ecosystem impact, incremental innovation/IP creation, and readiness to deploy.

• Timeline: projects typically run 12–18 months; there is no formal maximum, but timelines must match the project agreement.

According to program guidance, scoring is generally weighted across:

• Team and project management plan (25%)

• Business impact (20%)

• Strategic alignment (30%)

• Ecosystem impact (25%)

Applicant Type Requirements

Scale AI industry-led projects are open to a wide range of organization types involved in supply chains and AI. Eligible roles typically include:

• Solution adopters (value chain operators)

• Businesses that operate supply chains and will deploy AI solutions to improve performance, reduce costs, or increase resilience.

• Examples: manufacturers, retailers, logistics and transportation providers, warehousing firms, healthcare providers with supply chains.

• Product companies (AI/tech product vendors)

• Firms building AI-based products or platforms addressing supply chain problems such as forecasting, routing, scheduling, or anomaly detection.

• Service providers (AI services and systems integrators)

• Professional services and integration firms providing AI development, data engineering, MLOps, and deployment support.

• Academia and research centres

• Universities, colleges, and research institutions with relevant expertise contributing research, data science, or validation activities.

• Consultants and domain experts

• Specialized advisors who bring sector expertise, change management, IP strategy, governance, or compliance support.

• Hospitals and healthcare organizations

• Eligible as adopters or partners where projects align to value chain objectives, recognizing that some healthcare-focused calls may set additional terms.

Important notes:

• Non-Scale AI members can submit projects for evaluation, but if selected for funding, all funded participants must become members before receiving contributions.

• All participating organizations must be able to contract, incur eligible costs, and deliver activities as defined in the project agreement.

Size & Scale Criteria

Scale AI requires collaboration and SME participation:

• Minimum consortium: more than one participant.

• SME requirement: at least one participating organization must be an SME with fewer than 500 FTEs.

• Lead applicant: typically an industry organization capable of managing scope, timelines, reporting, and claims across the consortium.

While there is no minimum or maximum investment per project stated by the program, applicants should ensure:

• Sufficient project scale to deliver measurable value chain impact.

• Realistic timelines (projects commonly complete within 12–18 months).

• Capacity to cash-flow the non-funded portion and bridge reimbursements, which are made quarterly on eligible, incurred, and documented costs.

There is no formal revenue threshold; however, the ability to execute, co-invest, and report is essential and will factor into readiness.

Geographic Eligibility

Scale AI is a national program. Projects are expected to:

• Be executed primarily in Canada.

• Incur eligible costs in Canada.

• Deliver benefits to the Canadian AI and supply chain ecosystem.

Organizations with foreign ownership may participate if Canadian operations lead or perform the work and if the project benefits accrue within Canada. Cross-border partners can be included where justified, but Canadian activity and benefit must remain central. Always structure work plans and budgets to demonstrate Canadian execution and impact.

Project & Activity Requirements

Projects must satisfy four core selection criteria:

• In-scope strategic alignment

• Fit with Scale AI’s mission to leverage AI to raise productivity in value chains.

• Clear use cases with measurable outcomes (e.g., service level improvements, fewer stockouts, reduced lead times, lower waste).

• Collaboration and ecosystem benefits

• Multi-participant structure with meaningful roles for each partner and at least one SME.

• Pathways to share learnings or non-competitive benefits with the broader ecosystem.

• Incremental innovation and IP

• Activities must be incremental (beyond business-as-usual).

• Foreground IP creation and AI model development should be articulated.

• Projects should not be routine maintenance or retroactive funding.

• Readiness to execute

• Executive endorsement within participating organizations.

• Evidence of feasibility work (e.g., data quality assessment, proof of concept).

• Adequate AI expertise in the consortium to build, deploy, and scale the solution.

Eligible project themes include, but are not limited to:

• AI adoption by value chain operators (e.g., demand forecasting, network design, inventory and capacity optimization, predictive maintenance, routing).

• AI commercialization by vendors (e.g., scaling an AI product for supply chain optimization and deploying with pilot customers).

• Data readiness and integration necessary to enable the AI solution, when directly tied to deployment outcomes.

Financial & Operational Criteria

Beyond organizational type and project scope, applicants should confirm:

• Cost-sharing and reimbursement

• Scale AI’s contribution is a co-investment, typically reimbursing up to 40% of eligible costs for industry-led projects.

• Reimbursements occur quarterly upon submission and approval of claims with documentation.

• Applicants must cash-flow the non-funded portion and bridge timing between expenditures and reimbursements.

• Membership requirement

• Non-members may submit projects; membership becomes mandatory to receive any funding if selected.

• Governance and reporting

• Ability to sign a master project agreement.

• Capability to track eligible expenses, maintain timesheets where relevant, and meet reporting cadences and milestones.

• Compliance and standing

• Applicants should be in good standing (e.g., tax compliance, not under bankruptcy or debarment) and able to contract under Canadian law.

• Project duration and budget discipline

• Typical project duration is 12–18 months, with no stated maximum if justified.

• Budgets must be realistic and tied to deliverables and measurable benefits.

Ineligible Applicants

Organizations or consortia may be deemed ineligible if they:

• Propose a single-participant project (no consortium).

• Do not include an SME partner (<500 FTEs).

• Cannot execute the majority of work in Canada or cannot show Canadian ecosystem benefits.

• Seek funding for business-as-usual activities, routine upgrades, or retroactive costs.

• Lack executive endorsement or basic readiness (no data assessment, no POC history, unclear deployment plan).

• Cannot meet membership requirements if selected for funding.

• Cannot meet reporting, contracting, or compliance expectations.

Note: Academic-only projects without an industry adopter, or projects with diffuse objectives unrelated to value chains, are generally out of scope.

Special Cases & Exceptions

• Non-profits and public sector entities

• Non-profits, hospitals, and public institutions can participate where roles align with value chain improvement and consortium rules. Funding terms may vary by call; confirm specifics during intake.

• Foreign-owned firms

• May participate if the Canadian entity leads the work, costs are incurred in Canada, and benefits accrue to the Canadian ecosystem.

• Sector-specific calls

• Special calls (for example, healthcare) can introduce bespoke eligibility and funding rates. Always validate call-specific rules during application.

• IP ownership and sharing

• Foreground IP ownership is set by project partners. Neither Scale AI nor the Government of Canada claims ownership.

• Proposals should outline how results or learnings benefit the broader ecosystem without compromising competitive interests.

Self-Assessment Checklist

Use this quick checklist to gauge eligibility before you apply:

• Organization fit

• Are you a value chain operator, AI product company, AI service provider, academic institution, consultant, or healthcare organization addressing a supply chain challenge?

• Consortium

• Do you have at least two organizations collaborating?

• Does your consortium include at least one SME (<500 FTEs) with a meaningful role?

• Canadian execution

• Can you perform the majority of work in Canada and incur eligible costs here?

• Will the project deliver benefits to the Canadian AI and supply chain ecosystem?

• Strategic alignment

• Does your project adopt or commercialize AI to improve measurable value chain outcomes?

• Incrementality and IP

• Are activities beyond business-as-usual, with clear foreground IP or model development?

• Readiness

• Do you have executive endorsement?

• Have you completed initial feasibility activities (data assessment, POC)?

• Do you have sufficient AI and domain expertise in the team?

• Financial capacity

• Can you co-invest and cash-flow costs pending quarterly reimbursement?

• Are you prepared to become a Scale AI member if selected for funding?

If you can answer “yes” to most or all of the above, your organization is likely eligible to pursue Scale AI funding.

Conclusion

Scale AI funding is open to a broad range of Canadian organizations—solution adopters, AI vendors, service providers, academia, consultants, and healthcare entities—provided the project is collaborative, includes an SME, is executed in Canada, and advances AI adoption or commercialization for value chain performance. Strong applications demonstrate strategic alignment, ecosystem benefits, incremental innovation and IP, and readiness to deploy. With cost-share reimbursement typically up to 40% and quarterly claims, teams should confirm financial capacity and governance before applying. For current intake specifics and any sector call nuances, verify details with the program administrators as you prepare your submission.